Friday, 27 November 2015
Last updated 1 day ago
Nov 24 2010 | 5:07am ET
While most hedge fund investors are pouring their money into larger, more established firms, Swiss private bank Pictet & Cie is running the other way.
The firm's US$10 billion fund of hedge funds unit plans to increase its allocations to emerging hedge fund managers, with a consequent decrease in the amount it invests in the industry's big names. Pictet Alternative Investments could boost the amount it invests in smaller firms to 60% of its hedge fund assets, Bloomberg News reports.
"The typical situation in the aftermath of a crisis is people tend to focus too much on the risk and not enough on performance," Pictet AI CEO Nicolas Campiche said. "We're trying to refocus a bit of our portfolio on lesser-known entities, smaller, more nimble funds."
While returns are a major driver of the move, Campiche said risk plays a role, too: the risk inherent in relying on larger firms with long-tenured, high-profile managers.
"It's a more challenging environment and some that have nothing to prove any more, either to themselves or to the investor base, may just decide to do something else," he said. "That Druckenmiller risk is higher today than three years ago. This is a bit of new risk in our portfolio."
Stanely Druckenmiller, the founder of Duquesne Capital Management, abruptly announced in August that he would shutter the US$12 billion firm following three years of disappointing returns.
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…